Councils’ slow payments cause suppliers to suffer

By Rory Reynolds

SUPPLIERS to Scots councils are being squeezed because local authorities are failing to pay their bills within the Government’s suggested time limit.

On average, councils in Scotland paid just one quarter of bills within the Government’s suggested time limit – leaving small and medium-sized businesses struggling with their cash flow.

A Freedom of Information request by the Forum of Private Business has shown that barely a quarter of invoices were paid within the Government’s 10-day payment pledge in the past year.

The results showed that, on average, none of the 32 local authorities in Scotland had paid all of its bills within the 10-day target, with most taking the full 30-day limit.

Last year Lord Mandelson urged public bodies to pay small and medium sized firms within a ten day period, as many struggled to secure short term loans from Britain’s banks.